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Loan Proposal DRAFT BOARD DOCUMENT BD 2020-## CERTIFICATION PROPOSAL WASTEWATER COLLECTION SYSTEM IMPROVEMENTS FOR OJINAGA, CHIHUAHUA Published: October 9, 2020 DRAFT BOARD DOCUMENT BD 2020-XX CERTIFICATION PROPOSAL OJINAGA, CHIHUAHUA CONTENTS EXECUTIVE SUMMARY ...........................................................................................................1 1. PROJECT OBJECTIVE AND EXPECTED OUTCOMES ................................................................. 3 2. ELIGIBILITY ............................................................................................................................. 3 2.1. Project Type and Description ........................................................................................ 3 2.2. Project Location ............................................................................................................ 3 2.3. Project Sponsor and Legal Authority ............................................................................ 4 3. CERTIFICATION CRITERIA ....................................................................................................... 4 3.1. Technical Criteria .......................................................................................................... 4 3.1.1. General Community Profile .......................................................................................... 4 3.1.2. Project Scope ...................................................................................................... 6 3.1.3. Technical Feasibility ............................................................................................ 7 3.1.4. Land Acquisition and Right-of-Way Requirements ............................................. 8 3.1.5. Project Milestones .............................................................................................. 9 3.1.6. Management and Operation .............................................................................. 9 3.2. Environmental Criteria ................................................................................................ 10 3.2.1. Environmental and Health Effects/Impacts ...................................................... 10 A. Existing Conditions ......................................................................................... 10 B. Project Impacts .............................................................................................. 11 C. Transboundary Impacts ................................................................................. 12 3.2.2. Compliance with Applicable Environmental Laws and Regulations .................. 13 A. Environmental Clearance ............................................................................... 13 B. Mitigation Measures ...................................................................................... 14 C. Pending Environmental Tasks and Authorizations ......................................... 15 3.3. Financial Criteria ......................................................................................................... 15 4. PUBLIC ACCESS TO INFORMATION ...................................................................................... 16 4.1. Public Consultation ..................................................................................................... 16 4.2. Outreach Activities ..................................................................................................... 17 DRAFT BOARD DOCUMENT BD 2020-XX CERTIFICATION PROPOSAL OJINAGA, CHIHUAHUA EXECUTIVE SUMMARY WASTEWATER COLLECTION SYSTEM IMPROVEMENTS FOR OJINAGA, CHIHUAHUA Project: The proposed project will replace 27,688 meters (90,840 feet) of deteriorated wastewater collection lines in downtown Ojinaga, Chihuahua (the “Project”). Project Objective: The purpose of the Project is to eliminate exposure to untreated or inadequately treated wastewater discharges by replacing deteriorated wastewater infrastructure prone to leaks and failure, thus helping reduce water pollution and the risk of waterborne diseases. Expected Project The Project is expected to generate environmental and human Outcomes: health benefits related to the following outcomes: • Improve wastewater collection services for 1,700 existing residential connections located in the downtown area of the city, benefitting approximately 6,240 residents. • Reduce the risk of pipe failure and eliminate discharges of approximately 12.3 lites per second (lps) or 281,000 gallons per day (gpd) of untreated wastewater.1 Population to Benefit: 6,240 residents of Ojinaga, Chihuahua.2 Project Sponsor: The local water utility, Junta Municipal de Agua y Saneamiento de Ojinaga (JMAS). Estimated Construction US$2,540,500 Cost : 1 Source: JCAS, Final design of the Wastewater Collection System Improvements for Ojinaga, Chihuahua by JCAS (2019). Estimate based on a population density of 3.6 persons per household, the generation of 288 liters (63.4 gallons) of wastewater per person per day and a total of 9,994 connections, resulting in 99.9 liters per second (lps) or 2.28 million gallons a day (mgd), less the 87.6 lps (2.0 mgd) currently received and treated at the treatment plant, for total discharges of 12.3 lps (0.28 mgd) from the deteriorated infrastructure. 2Source: Population projections were estimated with data from the Mexican statistical institute (INEGI) and population council (CONAPO). The final design considers 3.6 people per household, as indicated in the Annual Report on the Status of Poverty and Unmet Social Needs prepared by the National Council for the Evaluation of Social Development Policy (CONEVAL) (http://www.dof.gob.mx/SEDESOL/Chihuahua_052.pdf). 1 OCTOBER 9, 2020 DRAFT BOARD DOCUMENT BD 2020-XX CERTIFICATION PROPOSAL OJINAGA, CHIHUAHUA NADB Grant: US$1,019,450 grant from the Border Environment Infrastructure Fund (BEIF) funded by the U.S. Environmental Protection Agency (EPA). Uses and Sources of Uses Amount % Funds: Construction* $ 2,540,500 100.0 (U.S. dollars) TOTAL $ 2,540,500 100.0 Sources Amount % Mexican federal funds $ 760,525 30.0 Mexican state and local funds 760,525 30.0 NADB-BEIF (EPA grant) 1,019,450 40.0 TOTAL $ 2,540,500 100.0 * Estimated Project costs include 16% value-added tax (VAT), supervision and contingencies. Project Status: Key milestones Status Environmental clearance – U.S. Complete Environmental clearance – Mexico Complete Final Design Complete Procurement-Mexican funds Anticipated in 4th quarter of 2020 Procurement-BEIF Anticipated in 2nd quarter of 2021 Construction period Estimated period of 24 months OCTOBER 9, 2020 2 DRAFT BOARD DOCUMENT BD 2020-XX CERTIFICATION PROPOSAL OJINAGA, CHIHUAHUA CERTIFICATION PROPOSAL WASTEWATER COLLECTION SYSTEM IMPROVEMENTS IN OJINAGA, CHIHUAHUA 1. PROJECT OBJECTIVE AND EXPECTED OUTCOMES The proposed project will replace 27,688 meters (90,840 feet) of deteriorated wastewater collection system pipe in the downtown area of Ojinaga, Chihuahua (the “Project”). The purpose of the Project is to improve wastewater collection infrastructure and services for 1,700 existing residential wastewater connections, which will reduce the risk of pipeline failures and eliminate approximately 12.3 liters per second (l/s) or 281,000 gallons per day (gpd) of untreated or inadequately treated wastewater discharges, thereby helping reduce water pollution and the risk of waterborne diseases. 2. ELIGIBILITY 2.1. Project Type and Description The Project falls within the eligible category of wastewater. 2.2. Project Location The Project will be implemented in the city of Ojinaga, Chihuahua, which is adjacent to the U.S.- Mexico border. Ojinaga is in the northeast region of the state of Chihuahua, directly across the border from Presidio, Texas and is approximately 254 miles east of El Paso, Texas. Its geographical coordinates are Latitude 29º 34′N and Longitude 104º 24′ W, at 2,749 feet above sea level. Figure 1 shows the approximate location of the Project. 3 OCTOBER 9, 2020 DRAFT BOARD DOCUMENT BD 2020-XX CERTIFICATION PROPOSAL OJINAGA, CHIHUAHUA Figure 1 PROJECT LOCATION MAP Presidio Project Area TX Ojinaga Chih Ojinaga Chih 2.3. Project Sponsor and Legal Authority The public-sector Project sponsor is the local water utility, Junta Municipal de Agua y Saneamiento de Ojinaga (JMAS or “the Sponsor"). JMAS was established on July 23, 1974 by a decree issued by the State Congress of Chihuahua and published in the Official State Gazette on August 21, 1974. In accordance with Article 64, section XLI of the Political Constitution of the State of Chihuahua, JMAS is a decentralized agency of the state utility, Junta Central de Agua y Saneamiento, and has legal personality and its own assets for the provision of water, wastewater collection and treatment services to the communities located within the municipality. Pursuant to the provisions of the State of Chihuahua Water Law, the main objective of the JMAS is to provide, conserve and manage, as well as to promote the construction of potable water, wastewater collection and treatment services in the municipality. 3. CERTIFICATION CRITERIA 3.1. Technical Criteria 3.1.1. General Community Profile The Project is expected to benefit residents in the community of Ojinaga, Chihuahua. According to data in the Annual Report on the Poverty Conditions and Social Needs, issued by the National Council for Evaluation of Social Development Policy (CONEVAL), in 2010, the total population in the municipality of Ojinaga was 26,304.3 According to CONEVAL, 44.3% of the residents of the municipality of Ojinaga
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